Minimum Wage Stagnation Keeps Millions on SNAP: Congress’s 16-Year Failure

More concerning than lavish parties amidst economic hardship is the reliance of 42 million Americans on SNAP benefits. This reliance stems from the federal minimum wage, stagnant at $7.25 for 16 years, failing to keep pace with rising costs and the economic realities faced by full-time workers. While proposals like the “Raise the Wage Act of 2025” aim to increase the minimum wage, its failure to increase in 16 years sends a powerful message that the government does not prioritize workers, thereby increasing the dependence on federal assistance programs.

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Congress Could Get Millions of People Off of SNAP by Raising the Minimum Wage, but It Hasn’t — for 16 Years.

The fundamental truth is stark: Congress could alleviate the burden on millions of Americans relying on the Supplemental Nutrition Assistance Program (SNAP) by simply raising the minimum wage. The shocking reality is that this hasn’t happened in sixteen years. It’s a period of stagnation that begs the question: why? It is the longest period the US has gone without increasing the minimum wage.

The economic implications are clear. A stagnant minimum wage forces workers to depend on government assistance, like SNAP, to survive. This essentially means that taxpayer money is indirectly subsidizing corporations that choose to underpay their employees. This cycle perpetuates a system where the working class struggles, while those at the top continue to accumulate wealth.

The arguments against raising the minimum wage are often based on fear. Some claim it will lead to inflation, businesses closing, or job losses. However, proponents point to studies suggesting that these fears are often overstated. A living wage isn’t just about financial survival; it’s about dignity and the ability to participate fully in society. It allows people to afford housing, healthcare, and basic necessities, all of which contribute to a healthier and more productive workforce.

Imagine a minimum wage tied to the cost of living, perhaps automatically adjusted for inflation or the average rent in a given area. Such a policy could dramatically reshape the economic landscape. Businesses would either have to pay their employees a living wage or face the consequences of an understaffed workforce. This could force companies to re-evaluate their priorities, focusing less on extravagant executive compensation and more on the well-being of their employees. Why is it your employee’s responsibility to sacrifice all prosperity simply to fund unprecedented prosperity for your c-suite?

The historical context is important. The federal minimum wage has increased very little over the past decades. Had the minimum wage kept pace with worker productivity, as some economists suggest, it would be significantly higher today. This discrepancy highlights a fundamental shift in the distribution of wealth, where the gains of productivity have largely gone to shareholders and executives, rather than the workers who generate them.

Of course, the issue isn’t as simple as just raising the minimum wage. Some argue that focusing on reducing housing costs or addressing corporate greed is a better approach. Antitrust measures, price controls, and government-run businesses are other potential solutions. However, the reality is that a combination of strategies is likely needed to create a truly fair and equitable economy. But increasing the minimum wage is one of the very best ways to impact a large number of people.

The irony is that many of the same people who oppose raising the minimum wage are often the loudest voices decrying government handouts. Yet, by keeping wages artificially low, they are effectively advocating for continued reliance on programs like SNAP. It’s a self-defeating cycle that benefits only a select few. The question then becomes, who is Congress really working for?

There is also the counterargument that raising the minimum wage could harm small businesses, pushing them to close, but many large corporations can afford to pay more. They raise prices and/or take on reduced profits instead of cutting employee pay. This leads to the thought that increasing minimum wage would hurt small businesses and is a way to strengthen monopolies. It is also an argument that the government should stay out of the business of setting wages, but focus on making sure there’s no inequality, coercion, or exploitation.

The truth is, Congress’s inaction on this issue speaks volumes about their priorities. It’s a clear indication of whose interests they truly serve. It’s time for the government to step up and enact legislation that reflects the values of fairness and economic justice, and this starts with a meaningful increase to the federal minimum wage. It’s time to put the working class first and prioritize the well-being of the majority.